Debt advice for anyone concerned about unemployment

The Debt Advisory Centre is reminding everyone to do what they can to protect themselves against financial hardship in the event that they're made redundant, after it was revealed by the Office for National Statistics that unemployment has hit a 20-year high and that there are currently over 1 million young people unemployed.

Some of those people may be able to rely on savings, but some may find they need to borrow money to get by. If you're in work at the moment - are you prepared for what might happen if you lost your job?

Growth forecasts predict that the economy will only grow by about 1% over 2012. Also, it's predicted by some experts that unemployment will rise further this year and the next. Sir Mervyn King, Governor of the Bank of England, has said that growth over the next few quarters would be "markedly weaker" than previously thought.

Unemployment can easily lead to debt. The debt charity the Money Advice Service has said that one in eight of the people who became unemployed in the third quarter of this year will have severe debt problems as a result.

A spokesperson for the Debt Advisory Centre commented: "If you are employed at the moment, consider whether you are doing enough to protect yourself financially if you lost your job. It is certainly worth putting whatever you can afford into savings every month. Even ?50 a month (just ?12.50 per week) would grow into a substantial pot of ?600 after only 12 months.

"If you're worried about your job security but can't afford to save at the moment because of debt payments, it's particularly important to get those debts paid off. If you can't even afford those debt payments, you may be able to lower your monthly payments with one of the many debt solutions that are available to people in debt. A professional debt advisor will be able to tell you about the various ways out of debt.

"If you are unemployed, do what you can to avoid borrowing. If you have savings to fall back on, so much the better; even so, you may find it impossible to maintain the same standard of living as when you were working. Addressing your spending and living within your means will help you to cope with unemployment and avoid unnecessary borrowing while you're out of work.

"Finally, make sure you are receiving all the benefits and tax credits you are entitled to while you're not working, although this isn't likely to be a great amount. While you're out of work, draw up a new budget taking account of your present income and try to make sure your expenses remain less than your income. Things may be difficult for a while, but unemployment is usually temporary, so focus on your goal of finding a new job, or retraining."

-ENDS-

Notes to Editors

The Debt Advisory Centre offers expert debt advice, as well as a range of debt solutions for people facing financial difficulties.

For more information, visit the Debt Advisory Centre website at www.debtadvisorycentre.co.uk.

Contact:
Melanie Taylor
Debt Advisory Centre
Melanie.Taylor@debtadvisorycentre.co.uk
Tel: 0845 056 6480

Source: http://www.impactwire.com/a/19188/Debt-advice-for-anyone-concerned-about-unemployment

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